Apple Says Imagination Technologies Claims ‘Inaccurate and Misleading’

Apple has hit hard at the accusations that its former mobile GPU supplier Imagination Technologies leveled at the Cupertino tech giant. According to the iPhone maker, Imagination’s “unsubstantiated allegations” made recently in their annual report to investors are “inaccurate and misleading,” Bloomberg reported Friday.

Apple is adamant that Imagination had known for much longer that their business relationship was ending, explaining it started working with the British firm since the first iPhone was released in 2007 and stopped accepting new intellectual property from them in 2015.

An excerpt from the article:
By 2016, Apple said it told Imagination it was further diminishing the relationship by initiating a clause in its contact that allows Apple to pay a lower royalty rate for using a smaller amount of intellectual property.
By February of this year, Apple said it told Imagination it was ending the relationship altogether and would no longer be making any royalty payments as early as 2018.
The statement contradicts Imagination CEO Andrew Heath who told investors on a conference call this week that Apple had informed Imagination at the end of March “that they were certain” that iOS devices released in 2018 or early 2019 would no longer use Imagination’s GPU designs.

Imagination Technologies has been supplying Apple with its GPUs right from the original iPhone. The latter has so far constituted the majority share of its revenue. Thus, Apple no longer relying on Imagination’s PowerVR GPU has led the company to restructure its business and has even forced it to put itself up for sale. Imagination has already started a dispute resolution process against Apple but that is unlikely going to stop the company from selling itself to a potential bidder.

The Cupertino firm is said to have already cut payments for licensed Imagination GPU designs from 30 cents to just 10 cents per iPhone. Analyst think Imagination will struggle to stay in business as an independent company without Apple as its key customer.


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